Fototica plans tripling in size until 2014
O Estado de S. Paulo
Excited with the numbers of the Brazilian optical retail that generates nearly R$ 7.5 billion (US$ 4.4 billion) a year with the sale of items such as glasses, frames and contact lenses, the Dutch private equity fund Hal Investments, controller of Fototica, intends to more than triple the earnings of the chain in the next four years: the idea is to go from the current R$ 200 million (US$ 117.7 million) to something near R$ 750 million (US$ 441.2 million) until 2014. In the business plan of Fototica it is defined that to achieve such goal it will go through the increase in the number of stores, which would increase from 118 (101 of its own) to 500 units. "The focus of the expansion should be in Brazilian capitals and in the regions East, Midwest and South", says Marcello Macedo, President of Fototica. "Those are the markets with greater purchasing power that offer the best opportunities."
According to Macedo, the growth plan is based on three fronts: acquisitions of local chains and the opening of own stores and franchises. The amount invested, because of the types of expansion, may range from R$ 150 million/US$ 88.2 million (in the case of prevalence of the opening of own stores) to up to R$ 450 million/US$ 264.7 million (in case of prevalence of acquisitions). The investment in own stores will be of at least R$ 50 million (US$ 29.4 million). "The best option is acquisitions, since we inherited the consolidated public and commercial points", says Macedo. "Such negotiations are, however, more difficult and usually take longer. We have transactions that already last five years and have not been completed yet". According to Macedo, no resources have already been set aside to afford the operation since Hal usually makes the investments required as soon as the transactions are closed. "After a negotiation is wrapped up, we will take it to the headquarters", says Macedo.